9911796707
TMI Blog2014 (4) TMI 962X X X X Extracts X X X X X X X X Extracts X X X X ..... in the circumstances of the case, the ld. CIT(A) has erred in ignoring that the assessee's predominant objectives are to conduct examinations for the candidates for the Chartered Accountants and to regulate it members and it does not provide any scholastic education, therefore, its activities do not fall within the category of education covered by the definition of the expression 'charitable purpose' which is second limb of the section 2(15) of the I.T.Act, 1961. 2. On the facts and in the circumstances of the case, the ld. CIT(A) has erred in ignoring the judgment of Hon'ble Supreme Court in the case of Sole Trusty, Lok Shikshana Trust vs. Commissioner of Income Tax (1975) 10 ITR 234(C) wherein the Hon'ble Apex Court has defined the word ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Civil) No. CC792/2014 dated 27.01.2014 by which Special Leave Petition of the department against the order of the judgment of Hon'ble High Court of Delhi dated 04.07.2013 (supra) have been dismissed. Ld. DR submitted that the Commissioner of Income Tax(A) has erred in ignoring that the assessee's predominant objectives are to conduct examination for the CAs and to regulate its members and it does not provide any scholastic education, thus, its activities do not fall within the category of education covered by the definition of the expression "charitable purposes" which is the second limb of section 2(15) of the Act. 4. The DR further pointed out that the Commissioner of Income Tax(A) has erred in not taking cognizance of the decision of Ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing Officer in arriving to conclusion that income of the appellant Institute from coaching classes is an activity of business, is the figure of earning from coaching classes as reflected by him in the table prepared in the assessment order giving detailed of gross income of coaching, expenditure incurred in coaching and net earning from coaching classes from assessment year 2002-03 to assessment year 2008-09 and his remark that the appellant Institute is earning huge income over the years like any businessman earn from the activities of business. However, on the other side the Ld. Authorised Representative of the appellant emphasized that the conducting of coaching classes through Regional Councils, the appellant Institute, following it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d this surplus income is earned in a systematic and organized way, the way in which business activities are carried out is also misconceived as merely because profit has resulted from the activity of imparting education would not change the character of the Institution. The Hon'ble Supreme Court in the case of Surat Art Silk Cloth Manufactures Association and Hon'ble Delhi High Court in the very recent judgement in the case of sister concern of the appellant Institute ICAI Accounting Research Foundation reported at 321 ITR 73 held that the mere fact of generating income, while carrying out the ancillary objects for achieving the main objects, would not per se change the character of the assessee till the surplus received qua these activitie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. counsel of the assessee referred para 15 of the above said order which reads as under:- "15. The Institute as such merely it is receiving coaching fee from students for imparting education, cannot be said to have been carrying on business and accordingly it is not required to maintain separate books of accounts as alleged by DIT(E). The income of the coaching classes earned by the assessee institute is within its objects and its Regulations and further these activities are educational activity within the definition of section 2(15) of the Income Tax Act, 1961, and consequently therefore cannot be activity of business for which separate books of accounts are required to be maintained. The order of the ld.DIT(E) is therefore, not sustaina ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
